NEW DEVELOPMENT
The statement stated that for the National Capital Region of Delhi, the Central Government being the appropriate government under the ESI Act, the Labour Ministry has already issued such ‘intention’ notification on June 7, 2021.
The Centre has decided to bring all casual and contractual workers working in municipal bodies under the social security schemes run by the Employees’ State Insurance Corporation (ESIC).
The ESI Corporation has been directed to take up the matter with the states/ UTs, being the appropriate government(s) under the ESI Act, for the issue of notification for coverage of casual and contractual workers in the municipal corporation(s)/ council(s) in their respective jurisdictions.
The ESI scheme is currently applicable to non-seasonal, manufacturing establishments employing 10 or more workers. For health and medical institutions, the threshold limit is 20 or more workers.
In the contributory scheme, an employer needs to pay 3.25% of the monthly wages paid to an employee while the employee requires to pay 0.75% of the wages.
Under the social security code, passed in Parliament last year, the government has proposed to bring gig and platform workers under ESI.
Option for becoming a member of ESIC has also been given to establishments with less than 10 workers under the social security code.
Once notifications for ESIC coverage are issued by the respective States and UTs, the casual and contractual workers working with municipal bodies will be able to avail the full gamut of benefits available under the ESI Act such as sickness benefit, maternity benefit, disablement benefit, dependent’s benefit and funeral expenses. In addition, these workers will be eligible to avail of medical services through a vast network of ESI facilities — 160 hospitals and over 1,500 dispensaries all over the country.
ESI PROVISION
Under Section 2(12), the ESI Act is applicable to all non-seasonal factories employing 10 or more persons. The State Government has extended the coverage under Section 1(5) of the Act to Shops, Hotel, Restaurants, Cinema including preview theatres, Road-motor transport undertakings, Newspaper establishments, Private Medical Institutions, Educational Institutions and to contract and casual employees of Municipal Corporation/Municipal Bodies employing 10 or more persons in the certain States/UTs, where State Govt. is the appropriate Govt.
The Central Govt. has extended the coverage under Section 1(5) to Shops, Hotels, Restaurants, Road Motor Transport establishments, Cinema including preview theatres, Newspaper establishments, establishment engaged in Insurance Business, Non-Banking Financial Companies, Port Trust, Airport Authorities, Warehousing establishments employing 20 or more Persons, where Central Govt. is the appropriate Govt.
The existing wage limit for coverage under the Act effective from 01.01.2017 is Rs.21,000/- per month (Rs.25,000/- per month in the case of Persons with Disability).
AREAS COVERED
Under Section 1(3), the ESI Scheme has now notified 575 Districts in 35 States and Union Territories (except Lakshadweep Island), which include 387 fully notified districts and 188 partially notified districts where the scheme is notified in Districts Headquarters Area & in Prominent Industrial Centers. The Scheme is yet to be notified in 161 districts.
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